REITs or land investment company are often described as a corporation that owns and operates real estates to get income. land investment company companies are corporations that manage the portfolios of high-value land properties and mortgages. as an example , they lease properties and collect rent thereon. The rent thus collected is later distributed among shareholders as income and dividends.
Types of REIT we offer
Equity
Private REITs
Publicly traded REITs
Public non-traded REITs
Advantages of REITs
Investors who park their funds during a REIT can benefit in these following ways.
- Steady dividend income and capital appreciation: Investing in REITs is claimed to supply substantial dividend income and also allows steady capital appreciation over the future .
- Option to diversify: Since most REITS are traded frequently on the stock exchanges, it provides investors with a chance to diversify their land.
- Transparency in dealing: Being regulated by the SEBI, REITs are required to file financial reports audited by professionals. It provides investors with a chance to avail information on aspects like taxation, ownership and zoning, hence making the whole process transparent.
- Liquidity: Most REITs trade on public stock exchanges and hence are easy to shop for and sell, which adds on to their liquidity aspect.
- Accrues risk-adjusted returns: Investing in REITs offers individuals risk-adjusted returns and helps generate steady income . It enables them to possess a gentle source of income to believe even when the speed of inflation is high.